International, learnings are that it’s great to start a launch in markets in a disciplined, methodical way. And that’s exactly what we’re doing internationally. So we’re now in approximately 10 markets outside of the U.S. or outside of North America. And we are in most of these markets, one, maybe two KOL centers, and there’s been a lot of enthusiasm for the technology. There are other offices, other practices who have absolutely expressed interest in becoming an AviClear site but we’re taking our time, and we’re making sure we support this initial wave of customers so that they can get great outcomes and they can become champions for the product. So I think the learnings internationally are that so far, and it is early, it’s just showing us that when we do it right and partner with great AviClear accounts, we can build successful AviClear practices.
Joe Federico: Okay, great. That’s really helpful. And then maybe just a quick follow-up. I know you had mentioned the expanded indications for AviClear, I wanted to ask maybe about just new products in the core business. Are there any introductions planned for this year? I think a while back, we had heard about maybe some existing system refreshers, could we see that this year? Or is that more of a ’25 event? Thank you.
Taylor Harris: Sure. Yes. We are planning on new product introduction. It is a refresh of one of our successful product lines. And so we’re excited about that. We’re not ready to talk specific but we are currently on track around and maybe even before the midyear time frame to bring that to market. So that will be first, and our product development team is working on other initiatives in the background, but those are not 2024 events.
Joe Federico: Okay, great. Thank you.
Operator: Our next question comes from Margaret Kaczor of William Blair. Please go ahead.
Margaret Kaczor: Hey guys, good afternoon. Thanks for taking the questions. I wanted to maybe start with the cash burn and cash position at year end. Just trying to do the math on my end and even if I assume kind of 30% of the burn in the second-half in 2024, I think it still gets me maybe the kind of the $26 million burn in the second-half. So annualized is at $52 million. I pushed that into 2025 and still seem there’s a bit of cash dynamic there. So how do we think about that? And as we think about 2025 inventory be maybe, a tailwind in a cash generator, could that be $10 million plus just give me some sense of how ’25 should look like as well. Thank you.
Taylor Harris: Sure. Thanks, Margaret. So yes, we’re obviously not ready to give specific 2025 guidance, but you’re in the ballpark as we get into the second-half of 2024, and that’s obviously a much favorable position from a cash burn perspective to what we experienced in 2023 and to where we’ll be in the first-half of 2024. And then as you think about launching off point into 2025 and beyond, the — what we’re working on is building an AviClear franchise that would have a higher margin consumable stream associated with it. And so to the extent that we’re successful with our initiatives as we build momentum through 2024 that should help us as we go into 2025. And I’d say similarly on the gross margin front, that’s an area of high focus for us.
We’re planning on improvements in 2024, but we still won’t be back to levels that the company had achieved in previous years. And so we’re not stopping with where we’re going to be in ’24 or even in the second-half of 2024. And then the last comment I would make in terms of trajectory. We’re obviously not assuming any improvement in the macro backdrop here in 2024. We’re hopeful on that front, but we’re not going to plan for it. But the further into the future that we get, we would assume that conditions can start to normalize and we can have a more favorable environment. That’s, of course, speculative. Like I said, it’s not built into the way we’re planning for this year. So those are just a few thoughts on that kind of give us optimism in the overall trajectory.
Margaret Kaczor: Okay, perfect. I appreciate that. And then I guess a different way of looking at guidance and it does seem like the guidance is achievable based on historical sequential progression and so on off of the depressed numbers out of the second-half of ’23. But maybe a different way of looking at it is also kind of looking at estimated rep productivity. So we don’t have those numbers, but we know there was a reduction in force from a rep perspective last year? What are you seeing in terms of reps since then and productivity metrics since then. And then if you can, just give us some context for what’s baked into 2024 guidance on about productivity versus either last year or whether you’d like to look at? Thank you.
Taylor Harris: So we have seen relatively consistent over time rep productivity. And that I would make that comment for last year. Now we obviously had — we did do a reduction in force because we were seeing that it was just a more challenging environment. So I think if we had kept the same number of reps we would not have seen the same level of rep productivity. So we’ve tried to rightsize the organization based on the conditions on the ground. As we’ve looked at 2024, though, we were entering the year with — or we’re currently here in the first quarter, in the low 40s in terms of our capital field organization, and we’re in the mid- to upper-teens in terms of our CAM organization. And we do have plans to increase those numbers, that field team force, both on the capital and the CAM front.
